IMO - Exxon guides street to higher Q1 earnings estimates

Early Monday, Exxon (XOM) filed an 8k providing detail around key factors impacting Q1 earnings; taking the mid-point of the range for each factor, it appears Exxon (XOM) Q1 underlying earnings could be ~$2.39 per share, versus current street expectations for $2.17.  The Company noted that the details provided are not comprehensive, and other factors could impact actual Q1 results, including the potential for a $4.0b write down of the Sakhalin-1 project in Russia. The substantial impact from liquids pricing provides a positive read-through for Exxon-controlled Imperial (IMO) as well as other upstream levered names; of note, downstream earnings appear likely to fall quarter on quarter. Given the Street is forecasting $8.47 in eps for 2022, a Q1 result of ~$2.39 suggest Street estimates for 2022 are likely to rise in coming weeks and could drive shares higher into Q1 results.

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Exxon guides street to higher Q1 earnings estimates